Mobile internet driving digital rural India

Since its inception four decades ago, Internet has become indispensable to the way of urban human life. From being a tool of communication it has now fully permeated into the human lifestyle and it is almost unimaginable to think of life without it.

In the recent years, mobile data has emerged a key growth driver for Indian Telcos with data revenue growing at 30-40% annually, while overall revenue growth remained at high-single digits. Internet users have also grown at a phenomenal rate with 3G/4G users growing by nearly 70% in the previous year.

Rise of Rural Data User

Until recently, benefits of mobile internet were largely restricted to metros and urban cities. While nearly 2/3rd of India’s population resides in rural areas, 2/3rd of India’s Internet users are in urban areas. Urban-rural digital divide is even more pronounced in high speed internet (3G/4G/Broadband) with only one-in-five users residing in rural areas.

But the Internet User Landscape in India is changing rapidly with rural India increasingly getting hooked to the Internet. Spending on mobile recharges has become more of a necessity for the rural youth to save for internet and mobile data packs. Due to increasing affordability (of smartphones as well as data packs), uptake of Internet is unlikely to restrict rural youth and other rural segments like farmers, as they are more likely to join the party.

As per an IAMAI and IMRB research, there has been a 93% year on year rise in rural mobile internet users. However, in spite of recent growth, data market in the rural areas continues to remain largely untapped with only 13% internet penetration, compared to 58% urban internet penetration. As Internet penetration in rural India increases, the next wave of growth will be driven rise of rural data customers, whose first data experience will be through smartphones. This segment will contribute to 70% of incremental customer case over the next two years.

Use-cases For Rural Internet Users

News & Entertainment: Music and videos have emerged as the biggest use-case for Internet consumption in India. Potential for entertainment related content on mobile is significantly higher in rural markets; as rural customers, unlike their urban counterparts, have limited avenues of entertainment due to non-existence of multiplexes & shopping malls, poor print circulation, etc. Further, access to digital TV content via mobile apps could be lifestyle changing trend in many remote rural areas where cable/digital TV networks are not present.

As a result, many mobile content apps are already targeting rural markets. For example, nearly 50% of paid subscribers for Ditto TV (an over-the-top television app by Zee Entertainment) reside in rural areas.

Transforming agriculture and agro-based industries: Indian Rural population, mostly engaged in agriculture and agro-based industries, lacks access to critical weather information and know-how to improve agricultural output. Mobile Internet has potential to transform their lives by providing timely weather & crop related information, access to wider markets, etc. As part of its Digital India initiatives, Government is investing in creating wide range of digital platforms, which have potential to empower farmers. For example, Government of India’s AgriMarket app could be used by farmers to get the prices of crops in the mandi within 50 km radius. Many other apps/platforms (e.g. Crop Insurance, e-Choupal, mKisan and KrishiMitr) aim to help farmers in improving agricultural productivity and lifestyle.

E-governance: Lack of physical infrastructure (like roads, transport connectivity) and remote location make difficult for rural citizens to access and avail various government services and facilities. For example, visiting enrolment centres for applying PAN card and other government documents can be extremely difficult proposition for rural citizens. However, Mobile Internet can enable rural citizens to apply for these services remotely.

E-commerce: e-commerce shopping is increasingly gaining traction in rural markets forcing large e-commerce retailers to build logistic networks in the rural markets. In fact, large part of traffic for online classified portals comes from small towns and rural markets. Farmers are increasingly using these portals for trading used-products and other niche segments. For example, these portals have thousands of ads for cattle like cows, buffaloes, goats and sheep.

Social Change and other benefits: Indian rural customers want to be omnipresent in the social space and social apps like Facebook, Whatsapp, etc. are likely to drive internet adoption in these markets. Further, Rural India will be exposed to a huge gamut of online services such as e-governance, online education, mobile banking, e-commerce, that can certainly change lifestyle.

However, there are still milestones to be covered before we achieve digital uniformity. While Urban India is slowly embracing 4G with telecom operators launching 4G across circles, Rural India is languishing behind – mostly driven by 2G and limited 3G data offerings. The rural markets are still working on limited data connectivity which presents a massive hurdle in rural customers truly adopting all the advantages that digitisation has to offer. However, since urban markets are becoming saturated, telecom operators are setting their sights on rural markets tap this enormous potential.

To sum up, mobile internet has potential to change rural lives in many ways. Though rural communities largely favour online entertainment, the future for digitization in rural markets looks bright as farming, weather and news related sites are also increasingly gaining eminence in the rural market. There is no denying that there is a huge demand and the potential for growths in the rural internet market.

DISCLAIMER: The views expressed are solely of the author and ETTelecom.com does not necessarily subscribe to it. ETTelecom.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

Anupam Vasudev, CMO- Aircel Limited, is a marketing veteran with 22 years of extensive work experience in sales, marketing, communications, branding and research. His current role with Aircel encapsulates his leadership qualities as he leads verticals like sales management, product development, distribution channel management, marketing communications (including advertising and promotions), pricing, market research, and customer service.

Anupam Vasudev, CMO- Aircel Limited, is a marketing veteran with 22 years of extensive work experience in sales, marketing, communications, branding and research. His current role Show more.. with Aircel encapsulates his leadership qualities as he leads verticals like sales management, product development, distribution channel management, marketing communications (including advertising and promotions), pricing, market research, and customer service.